Small and Medium Scale Credits
a. Enterprise Loan
• The conditions for the loan shall include:
a) Loan size: #501,000 minimum and maximum of 1% or 5% of the shareholders’ funds unimpaired by losses as the case may be.
b) Eligible client: The prospective borrower must have been a customer of the bank for a period of 3 months before the loan is granted.
c) There shall be ‘Risk Charge’ of 2% of the loan principal which shall be transferred to a risk fund account as a reserve against any eventuality.
b. Agric Medium Loan
• This shall be between #501,000 to 1% of the bank’s shareholder’s fund targeted at individual farmers operating at a medium scale.
• Loan request must be for a value point in the value chain of agric-business(e.g. planting, harvesting, marketing, etc)
• The maximum tenor of the loan shall be twelve months.
c. Hire Purchase Facility
• The bank shall purchase income generating assets of values greater than #500,000 and hire it to eligible medium scale clients who shall repay over an agreed period.
o The interest rate shall be 42% per annum or 3.5% per month.